Unless you are getting a refund, says Tax Tiger, opening a certified letter from the IRS is just plain scary.
Tax Tiger says that hundreds of thousands of Americans fall behind on their taxes every year. For most, it’s a simple fix, and often they are out of Uncle Sam’s radar after a few weeks and a late fee or two. Unfortunately, for the rest, the IRS only waits so long before more notices follow. Tax Tiger points out that after sending letters, the IRS can–and will–start taking personal property to make up for the lost funds. The following outlines the IRS Notice process prior to an actual seizure of assets.
Initially, the IRS will send a 30 day notice, says Tax Tiger. This first letter is usually less aggressive in nature but may mask the fact that the IRS is getting into position to levy personal property and accounts, Tax Tiger reports. This is a good time to obtain legal representation.
If a 30-day notice is met with silence, Tax Tiger says that the next step in the IRS levy process is a demand for payment, which must be acknowledged within 10 days. Form CP 501 is a harsh reminder of the debt that remains and that it’s time to remit to the IRS in full or immediately contact a tax relief agency, insists Tax Tiger.
The IRS does, at some point, remind the taxpayer that there are penalties and fees accumulating. According to Tax Tiger, these fees can double or even triple the original tax amount owed. These amounts add up fast, and can soon equal an Intent to Levy Notice, often citing valuable property as collateral.
The next to last step in the levy process, reports Tax Tiger, is an official Notice of Intent to Levy Property. In this notice, the IRS will make their attack plan known. Tax Tiger notes that in addition to any personal or real property that the taxpayer owns, the IRS can commandeer up to 15% of their Social Security benefits and drain bank accounts overnight.
Form CP 90 is the final and most critical piece of correspondence the taxpayer will receive before the IRS swoops in and collects everything that they have worked for. Many taxpayers feel completely hopeless by this point, says Tax Tiger. This still doesn’t have to be the case; Tax Tiger strongly encourages seeking reliable legal counsel at this point.
If all of these notices are ignored, the IRS will file a legal notice for a federal tax lien. This is devastating and can literally change people’s lives for the worse. With this notice the IRS effectively blocks other creditors and can seize homes, vehicles, and any other property that they believe may persuade the taxpayer to pay the debt – all of it.
Tax Tiger reminds taxpayers that none of these notices are the end of the world and, with proper guidance, a spark of light can be found in even the darkest of times. For more information, visit Tax Tiger online at www.taxtiger.com
